Exxon's net income rose 6.9% to $1,480 million in the
fourth quarter of 1982. For the year, however, net
income earnings fell 13.3% compared with 1981.

Exxon Chairman C.C. Garvin, Jr. made the following
comments on the operating environment in 1982:

"The year just concluded must be judged as a difficult
one for the petroleum industry. Exxon, along with the
industry in general, was faced with continuing
reductions in demand for petroleum and chemical
products and related excess capacity in all phases of these
operations.

"In this environment, Exxon took various actions which
should have continuing beneficial financial effects,
including streamlining current operations through
inventory reductions, plant closures and staff reductions,
slowing down the rate of growth in capital expenditures,
postponing some planned major projects and reducing
and restructuring debt to reduce overall borrowing costs
and maintain the corporation's strong financial
condition. External debt was reduced approximately
one billion dollars during 1982."

Garvin then went on to analyze specific 1982 results by
major business segments:

"Petroleum exploration and production earnings in the U.S. of
$1,873 million were down 17% from 1981. Higher

exploration costs, together with higher producing
operating expenses and provision for the disposition of
certain regulatory and tax matters, were the main factors
in the earnings decline.

"Earnings from refining and marketing operations in the ( .'.
were $447 million, up h-om S87 million in 1981. The
absence of unfavorable cost adjustments booked in 1981
associated with wind up of the crude oil price control
regulations, together with improved margins in 1982,
accounted for the earnings improvement.

"Foreign refining and marketing operations were severcl
impacted by the unfavorable prevailing market
conditions. Earnings totaled $666 million, down liom
$1,021 million in 1981, with the major impact in Europe.

"International marine operations incurred losses of S98
million as compared with earnings of S29 million in the
previous year.

"In other energy operations, net losses of $102 million \wcrc
dominated by the charges against earnings for
mothballing the Colony Shale Project in Colorado.

"Earnings from utorlduide chemical operations der lined 61%
to $92 million from $238 million in 1981 and were
particularly severe in the L'.S. and Canada.

The Other Operations segment had earnings of S36 million
as contrasted with losses of S43 million in the p)evioius
year. Real estate operations continued prolitabl."

Editorial note: From time to time, certain questions will
repeatedly be asked by employees. Whenever it is felt that
other employees would also berefit from such questions and
answers, it will be further publicized. Below follows a
question that has been frequently asked during the last few
months.

What are the procedures I
should follow with my Dental/
Medical claim form?
As was announced in a letter to
all employees at the end of December
'82, changes have been made in the
claims procedure. The upper portion
of the claim form, available at Rm.
155 of the G.O.B., should be completed
by the employee. After the doctor or
hospital fills out the backside of
the form, it should be forwarded to
American Life Insurance Company
(ALICO). The Insurance Company will
then pay the doctor or hospital in
accordance with the Program and send
you an 'Explanation and Benefits'
copy. This will inform you on what the
Insurance Company has paid, when, and
will show you the balance, if any,
which you owe the provider.
If you have paid your bill, you
should attach your 'paid' receipt
with the form and send it
to the Insurance Company which will
then make payment directly to you.

On February 11, 1983, the Independent Oil Workers
Union of Aruba and Lago signed the new Collective
Working Agreement, which became effective on
February 1, 1983, and will expire on July 15, 1986.

On behalf of Lago the new contract was signed by
President G.E. Golden, Employee Relations Manager
H.F. Coffi and Chairman of the Management
Bargaining Representatives M. Angela.
IOWUA signatories were M. Arends, President; F.
Garrido, General Secretary; and R.C. Boekhoudt,
Treasurer.
The new CWA was ratified when Union members voted
on January 28 to accept the Agreement in Principle as
was priorly accorded by IOWUA and Lago
representatives.

The main improvements in the new CWA are:

*** 11.0% General Wage Increase which includes a
general improvement increase of4%, in addition to COL
compensation.

Lago's office personnel are now also receiving training in fire
fighting. In a recently established program, man and woman are
taught to use the equipment for extinguishing building fires and
also learn the evacuation procedures in case of emergencies. The
Fire Section is planning to conduct this training once a monthfor
the next ten months to cover most office personnel.

*** Improvement in Vacation da\s for those \ith o\ r
one year of service, fi'om 15 to 18 da\s and for those with
over 20 years of service from 23 to 24 vacation da\s.

*** The Medical Expense Reimbursement Plan and the
Long Service Recognition Prog am have been
significantly improved. Extensive coverage to these
programs was given in the Februair issue of the At ba
Esso News.

*** The Dental Plan now covers 75% of preventive care
treatment with a maximum of Fls. 100 per person pet
calendar year. It also covers 50% of basic and major
treatment up to Fls. 1000 per person per year and FIs
2500 per family per year in or outside the Netherlands
Antilles. The Plan has been extended to cover children
up to 23 years of age when attending school and also
includes children 19 years and over when not capable of
self-sustaining employment by reason of mental
retardation or phisiscal handicap if so approved by
Lago's Medical Director.

*** Additional time oll'with pay has been given lor the
birth of employee's legal child or legally recognized
child, change of employee's residence to register move,
for receipt of 10-year service award, and for Union
business meetings.

Furthermore, the traditional Christmas bonus will
continue to be paid in the form ofa 4-\eek regular pa\ in
December of 1983, '84, and '85. The year-end lumpsum
payment of Fls. 1000, last paid in February, will also
continue to be paid in December of 1983, '84 and '85.

One of the many places that Mr.
Monk visited on his 'safety' tour
of the refinery was the
Mechanical Shops. Here some
employees are showing him
I ihow they perform their jobs
with safety in mind.

Most emplo ees are aware that Lago's 1982 safety record
%as better than that of '81 and '80. Lago's record was
even good enough that it placed third in the 1982
National Salet\ Council contest for Petroleum Products
and Refining companies. Still, in matters of safety, the
aim is always to reduce the injury level to nil. To make
the Company an even safer place to work at, Lago has
contracted a Du Pont Senior Safety Consultant to assist
in further improving Lago's safety performance.

\\h\ I)u Pont? This 180 years old business has
historical) treasured safety: foi about 100 years the Du
Pont family has been manufacturing explosives, and lack
of salt\ could have meant instant liquidation. Du Pont,
a company with 150,000 employees spread out all over
the world, has a 100 times better safety performance
when compared to the all-industry average. One Du
Point plant managed to accumulate 66 million exposure
hours without a disabling injury. And at least 100 out of
its 140 plants have more than 1 million exposure hours
without a disabling injury. Out of the company's
successful safety experience came the Du Pont safety
consulting service.

Mr. Dwight Monk. a Certified Safety Professional from
Du Pont, was recently here on a three week visit. Mr.
Monk said that the first step he had to take before
recommending any safety action plan was to learn what
goes on in the refinery by spending "a considerable
amount of time watching how Lago employees
performed their jobs." He also interviewed people from
all levels of refinery operations, from the Lago President,
to the Union board members, to the employees working
in the field. "We at Du Pont believe that safety is the
result of a good team effort between employees and
management," commented Mr. Monk. "Management
is responsible for setting priorities, providing the overall
direction of the safety effort, establishing rules and
procedures with the help of employees, and monitoring
the progress of safety performance."

As for the employees, "they are responsible for following
the rules and procedures," said Mr. Monk. But as there

are no rules for everything, they should plan safety in
every job they do, and turn in suggestions for safety
improvement." Mr. Monk also observed that employees
should develop a "brother's keeper attitude. This means
that an employee should be willing to pass on safety
advice to others and at the same time not become upset
when someone else passes on advice to him."

After looking at Lago's rules and procedure, analyzing
how safety is communicated and how people are
involved in safety, Mr. Monk has developed his
recommendations based on the things Du Pont, by
experience, has proven to be effective.

Even though Mr. Monk thinks that it will take some time
before his recommendations take effect on the safety
performance statistics, he said "We believe that safety is
good business and that all injuries can be prevented."
Certainly a good philosophy to live by!

LSF application

available now

Application
Foundation
March 31 at

forms for the Lago Scholarship
assistance are available now until
the following locations:

Completed forms should be returned to Room 165
of the G.O.B. not later than April 8, 1983.

ARUBA ESSO NEWS

Maart 1983

8 ARUBA ESSO NEWS March 1983

People.

-B~iUa~g

Th;Ij

Snits undergo turnarounds, buildings are
constructed, and repairs are made ..... The refinery
keeps running!
There's no place for phobias in a place like this.
There are towers to climb, high scaffolds to stand on,
and dark, closed-in furnaces to work in ....
The Refinery is bustling with activity, and it's the
refinery people who are doing the job. .....